Albertville applies overhead based on direct labor hours. The variable overhead standard is 2 hours at $12 per hour. During July, Albertville spent $116,700 for variable overhead. 8,890 labor hours were used to produce 4,700 units. What is the variable overhead rate variance?
a. $3,200 unfavorable
b. $6,120 unfavorable
c. $10,020 unfavorable
d. $3,200 favorable